British Airways is to pass on some of the burden of recent record oil prices to its passengers by more than doubling a fuel levy paid on long-haul routes, the company said yesterday.
The airline, which also unveiled quarterly profits near the upper end of analysts' expectations, will increase a fuel surcharge on long-haul single tickets from ?2.50 (US$4.60 dollars) to ?6.
On return flights, the charge will go up from ?5 to ?12, the airline said in a statement.
The increase takes effect from Aug. 11, with a short-haul surcharge of ?2.50 remaining unchanged.
Fuel prices are proving an increasing headache for airlines worldwide, with oil hitting fresh record highs late last week. Brent North Sea crude soared to US$41.50 dollars per barrel on Friday.
British Airways has warned that its fuel bill for the financial year to the end of March next year is likely to rise by around ?225 million, of which the increased surcharge will recoup only about ?70 million.
Nonetheless, the carrier saw operating profits for the three months to the end of June reach ?150 million, near the upper end of analysts' expectations of 95 million to 160 million.
The figure was also significantly higher than the ?40 million operating profit seen in the same period last year, when the world aviation industry was rocked by both the Iraq war and the SARS virus in Asia.
"These are reasonable results but currently fuel and employee costs remain our biggest challenges," chief executive Rod Eddington said.
Martin Broughton, the airline's new chairman, noted that market conditions remained difficult.
"Long-haul premium volumes are recovering steadily, while short-haul premium travel remains at lower levels. The non-premium markets are very price-sensitive," he said.
Ryanair, a major rival to British Airways on short-haul flights within Europe, said it had no plans to introduce fuel surcharges.
Communications head Paul Fitzsimmons said: "Every Ryanair passenger can rest assured that Ryanair guarantees no fuel surcharges -- not today, not tomorrow, not ever."
Virgin Atlantic Airways, which introduced ?2.50 surcharges earlier this year, said it was keeping the issue of further possible charges "under review."
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
RSS